CPCA's Cui Dongshu said promotions and model downgrades in China's passenger‑car market have normalized since 2025 and market order has improved. He noted the restoration of NEV purchase tax has reintroduced the effect of manufacturers' guide prices on consumers' tax liabilities. In May 2026, 20 models had price cuts, up 7 YoY — including 7 pure ICE models (+5 YoY) and 7 PHEV models (+4 YoY); he said price pressure on ICE and narrow‑definition PHEVs is high, so adjustments are understandable. Ye

CPCA's Cui Dongshu said promotions and model downgrades in China's passenger‑car market have normalized since 2025 and market order has improved. He noted the restoration of NEV purchase tax has reintroduced the effect of manufacturers' guide prices on consumers' tax liabilities. In May 2026, 20 models had price cuts, up 7 YoY — including 7 pure ICE models (+5 YoY) and 7 PHEV models (+4 YoY); he said price pressure on ICE and narrow‑definition PHEVs is high, so adjustments are understandable. Year‑to‑date through May 2026, 77 models recorded price cuts, down 4 YoY: conventional ICE 32 models (+13 YoY); hybrid ICE 4 (+1 YoY); PHEV 16 (flat); range‑extended 3 (-4 YoY); BEV 22 (-14 YoY). In May 2026, discounted NEV models had an average list price of 215,000 yuan and an average cut of 21,000 yuan (avg. reduction 9.6%). Jan–May 2026 discounted NEV models averaged 249,000 yuan with an average cut of 31,000 yuan (avg. reduction 12.5%).